May 12, 2016

Politifact: Rating the Philly Daily News’ claim that ‘It’s not a grocery tax’

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“Carl Davis, research director at the Institute on Taxation and Economic Policy, said it was possible the prices of other products would rise but not probable in most circumstances. He said smaller convenience stores would be more likely to raise prices on other products than larger grocery stores because they likely take in a greater share of revenue from soda sales. Still, they’d face limitations on how much they could increase prices of other goods given the lack of variety of items they sell and the need to keep profit margins high on soda if soda is a major revenue generator for them. “All that said, this soda tax proposal is novel enough that any answer to this question is going to involve some amount of speculation,” he said.”

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